New Look eyeing up pounds 1.7bn flotation.

FASHION chain New Look is considering a pounds 1.7bn stock market flotation, it has been reported.

The group, which is owned by private equity firms Permira and Apax, as well as its founder Tom Singh, could list on the stock market during the first quarter of next year. Investment banks are said to be lining up to handle the flotation, with Merrill Lynch, Goldman Sachs, Citigroup and Credit Suisse all thought to be interested.

It is understood that the company is also looking for a new chairman with City experience to handle the listing, with current chairman Phil Wrigley expected to leave the group.

The possible flotation comes just over two years after the group abandoned plans to list on the stock market after a lukewarm response from investors, while a pounds 2bn sale of the business also failed when the company was unable to agree a price with potential suitors.

Weymouth-based New Look was founded in 1969 by Mr Singh, and was taken private in 2004 by Apax and Permira for pounds 700m, with Mr Singh retaining a 22% stake.

Since then its new owners have invested more than pounds 400m in the business, although it has a pounds 1.1bn debt.

New Look is one of the few retailers to benefit from the downturn, as consumers look for value for money.

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WEARING WELL New Look's Autumn/ Winter 2009 collection.